Roofing Insurance Laws in Tennessee

Informational only — not legal advice. Laws and case precedent change, and outcomes depend on your specific policy language. Verify current law with your state Department of Insurance or a qualified attorney before relying on it.

Can insurers depreciate labor when calculating ACV?

Prohibited

Tennessee insurers may not depreciate labor when calculating actual cash value under standard homeowners policy language. The policy definition of ACV is ambiguous as to labor, and ambiguity is construed against the insurer. Labor may be depreciated only where the policy says expressly and unambiguously that it is subject to depreciation, so a labor depreciation line on a Tennessee ACV estimate is challengeable unless the carrier can point to that language.

Authority

Lammert v. Auto-Owners (Mutual) Insurance Co., 572 S.W.3d 170 (Tenn. Apr. 15, 2019), No. M2017-02546-SC-R23-CV, answering a certified question from the U.S. District Court, holds that an insurer using replacement cost less depreciation to reach actual cash value may not depreciate labor costs under a policy that does not expressly provide for it.

Tennessee Administrative Office of the Courts — press release on Lammert v. Auto-Owners (Apr. 15, 2019)

Must insurers replace undamaged materials so the repair matches?

Required

Tennessee has an on-point matching regulation. When a loss requires replacement of items and the replacements do not match in quality, color, or size, the insurer must replace enough to produce a reasonably uniform appearance, at no cost to the insured beyond the deductible. On a roof, that means the carrier owes enough shingles, up to full slopes or the whole roof, to avoid an obvious mismatch.

Authority

Tenn. Comp. R. & Regs. 0780-01-05-.10, "Standards for Prompt, Fair and Equitable Settlements Applicable to Fire and Extended Coverage Type Policies with Replacement Cost Coverage," within the Unfair Claims Settlement Practices rules at Chapter 0780-01-05. The rule requires replacement conforming to a reasonably uniform appearance according to the applicable policy provisions and states expressly that it applies to interior and exterior losses. Two qualifications. The rule reaches first-party policies with replacement cost coverage, not ACV-only policies. The phrase "according to the applicable policy provisions" ties the duty to the policy, so a specific anti-matching endorsement can narrow it.

Tenn. Comp. R. & Regs. 0780-01-05-.10 — official Tennessee Secretary of State rules PDF (Chapter 0780-01-05, Unfair Claims Settlement Practices) · Tenn. Comp. R. & Regs. 0780-01-05-.10 (Cornell LII, full regulation text confirming matching / uniform-appearance and interior-and-exterior-losses language)

Can a contractor pay or waive the homeowner's deductible?

No specific statute

No Tennessee statute prohibits a contractor from waiving, rebating, absorbing, or paying a homeowner's property insurance deductible, and none bans "we cover your deductible" or "no out-of-pocket" advertising. The exposure is the fraud and deceptive-practices analysis, and it turns on your billing: if you bill the carrier a price you never intend to collect, the estimate misstates what the job costs. Bill what you actually charge and the deductible problem does not arise.

You may

Bill the carrier the price you actually charge the homeowner
Collect the full deductible from the homeowner
Offer a payment plan or financing so the deductible can be paid over time
Give a genuine, disclosed discount, with the estimate written at the discounted price
Explain to the homeowner that a real discount reduces what the carrier pays, so it does not erase the deductible

You may not

Submit an estimate at a price you never intend to collect in order to absorb the deductible
Inflate a scope or line item to cover the deductible
Advertise a "free roof" or "no deductible" job that depends on billing the carrier more than you charge
Rebate the deductible back to the homeowner after collecting it on paper
Demand payment before the insurer confirms coverage or before the three-day cancellation window closes

Penalty: Inflating an estimate to absorb the deductible can be prosecuted as insurance fraud under Title 56, Chapter 53, and a deceptive pitch can be an unfair or deceptive act under the Tennessee Consumer Protection Act.

Authority

Tennessee's Residential Roofing Services statute, Tenn. Code Ann. sections 62-6-601 to 62-6-606 (2012 Public Chapter 821), governs contract cancellation rights, written disclosures, and payment timing. Section 62-6-604 bars requiring payment before the insurer confirms coverage or before the three-day cancellation window closes. The word "deductible" appears nowhere in the part, including the definitions at section 62-6-601. Section 62-6-606 makes any violation of the roofing statute a violation of the Tennessee Consumer Protection Act, Tenn. Code Ann. section 47-18-104. No deductible-rebate provision exists elsewhere in the Tennessee Code; the fallback authority is the insurance fraud statutes at Title 56, Chapter 53, and the TCPA at Title 47, Chapter 18. Tennessee has no deductible-specific prohibition or advertising ban of the kind found in Texas or Florida.

Tennessee Secretary of State — Public Chapter 821 (2012), official enacted text of Tenn. Code Ann. sections 62-6-601 to 62-6-606 (residential roofing; no deductible language) · Tennessee General Assembly — HB2915/SB2714 (107th GA, 2012) bill history, enacted as Public Chapter 821 · Tenn. Code Ann. section 62-6-604 (payment-timing rule; no deductible reference) — FindLaw statute text · Tenn. Code Ann. section 62-6-606 (violations = Tennessee Consumer Protection Act violations) — FindLaw statute text

Can a contractor negotiate the homeowner's claim?

Restricted

Tennessee requires a public adjuster license to act on a homeowner's behalf on a first-party property claim. You may inspect the roof, document the damage, write your own estimate or supplement, and discuss your scope and price with the adjuster; the statute expressly exempts contractors gathering facts about the loss. You may work your own estimate; you may not work their claim.

You may

Inspect the roof and document the damage
Write your own estimate, scope, and supplements
Discuss the scope and price of your own work with the carrier's adjuster
Photograph and furnish facts surrounding the loss
Meet the adjuster at the property and answer questions about your estimate
Recommend that the homeowner file a claim

You may not

Tell the homeowner you will handle their claim
Negotiate the settlement amount on the homeowner's behalf
Advise the homeowner on policy coverage
Investigate, appraise, or adjust the loss for the insured
Advertise or solicit public adjusting services
Pay or accept a claims fee or commission involving an unlicensed person

Penalty: License denial, suspension, or revocation plus a civil penalty of $100 to $1,000 for each violation, with each day of continued violation counted separately.

Authority

Tenn. Code Ann. section 56-6-901 et seq., the Tennessee Public Adjuster Licensing Act of 2006. Section 56-6-902(8) defines a public adjuster as a person, other than one employed by a carrier, who for compensation acts on behalf of the insured in investigating, estimating, appraising, presenting, or discussing claim value and effecting resolution of first-party property damage claims; advertises or holds out as a public adjuster; or solicits business, adjusts losses, or advises an insured about first-party claims. Section 56-6-903(a) bars acting or holding out as a public adjuster without a license. Section 56-6-903(d)(3) exempts a person employed only to obtain facts surrounding a loss or furnish technical assistance to a licensed public adjuster, naming contractors, photographers, appraisers of value, private investigators, and engineers. Section 56-6-910 authorizes license discipline and the civil penalty above. Section 56-6-913(b)-(c) bars paying or accepting a commission, service fee, or other valuable consideration for claims work performed by a person required to be licensed who is not. One qualification. Section 56-6-903 contains no roofing- or repair-contractor-specific prohibition, and no Tennessee roofing or home improvement statute expressly bars a contractor from negotiating a homeowner's claim. There is no Tennessee Department of Commerce and Insurance bulletin or reported decision applying the Act to roofers, so the line between the contractor exemption and unlicensed adjusting rests on the statutory text.

Tenn. Code Ann. § 56-6-901 — short title, Tennessee Public Adjuster Licensing Act of 2006 (statutory text, verified) · Tenn. Code Ann. § 56-6-902(8) — definition of "public adjuster" (statutory text, verified) · Tenn. Code Ann. § 56-6-903 — license required (a); exemptions (d), incl. (d)(3) contractors obtaining facts surrounding a loss (statutory text, verified) · Tenn. Code Ann. § 56-6-910 — license discipline; civil penalty $100–$1,000 per violation, each day separate (statutory text, verified) · Tenn. Code Ann. § 56-6-913(b)-(c) — no commission or fee paid to or accepted by an unlicensed person for claims work (statutory text, verified)

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